Non-Insurable Risks

Non-insurable risks are those whose probability cannot be determined and which cannot be insured against. Fluctuations in demand and prices are examples of non-insurable risks. According to Hall, ‘Those uncertainties which cannot be forecasted and which are caused due to lack of business entrepreneurship, lack of presence of mind, cannot be insured and, therefore, they are non-insurable risks.” Non-insurable risk has the following features:

(i) It is related to a limited section of the society or business community.
(ii) It cannot be estimated or forecasted.
(iii) Its insurance cost is more than the degree of risk involved.

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